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On Thursday morning trade, the shares of Escorts Kubota hit a nine-month low of Rs 1,422 down which is nearly 4 per cent on the Bombay Stock Exchange (BSE). Also, the stock turned ex-date for a final dividend of Rs 7 per share. During this period, the stock has traded lower for the third straight day, falling 9 per cent,
Recently, the stock price of Escorts Kubota has declined 27 per cent from its record high of Rs 1,930 touched on April 5, 2022.
In Financial Year 2022, the tractor market share declined by 1 per cent, as the company in strong markets in UP (at -14 per cent to -15 per cent) and Bihar (at -20 per cent) underperformed compared to some weaker markets such as Maharashtra (at +20 per cent), Karnataka (at +5 per cent), Andhra Pradesh (at -3 per cent) and Gujarat (at -4 per cent), Escorts Kubota said in its FY22 annual report.
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“With recent Government actions, Inflation may stabilise in the near term, and operating leverage may further possibly help partially dilute the impact on margins in coming quarters for tractor segment. With the Government’s thrust on infrastructure, we expect a good recovery in the latter part of the current fiscal year 2022-23 for the Escorts Construction Equipment Segment. But a steep rise in input costs leading to higher owning cost for customers remains a key cause of concern,” the company’s management said while announcing May 2022 sales numbers on June 1.
